By Deborah Levine

Treasury prices were slightly lower Monday, reversing earlier declines as companies in several industries announced plans to slash jobs.

The two-year note (UST2YR) yielded 0.83%.

Ten-year note yields (UST10Y) rose 1 basis point, or 0.01%, to 2.63%. Bond prices move inversely to their yields.

Construction-equipment maker Caterpillar (CAT) said it would cut 20,000 jobs, and Home Depot (HD) said it would cut its workforce by about 7,000 jobs.

Sprint Nextel (US-S) it will eliminate 8,000 jobs in the first three months of 2009.

Bonds remained under pressure, though, from a slew of government debt auctions this week that will start with $57 billion in bills and $8 billion in 20-year inflation-indexed securities.

Bids for three- and six-month bills will be accepted until 11:30 a.m. Eastern time. The sale of Treasury Inflation Protected Securities, known as TIPS, will end at 1 p.m.

The Treasury Department also will put record amounts of two- and five-year notes up for bid, reducing investors' willingness to buy higher amounts at yields already near the lowest ever.

"We see bond markets under pressure as actual and planned issuances surge," especially as foreign official buyers having less ability to invest in U.S. debt, said analysts at UBS Securities.

More proof of a weak economy may be in a report at 10 a.m. Eastern time that's expected to show U.S. sales of existing homes slowed to a 4.36 million pace in December, according to the median estimate of economists surveyed by MarketWatch.

The dearth of job cuts may work against the bond market though, if it leads the government to increase its already mammoth stimulus proposal.

Longer-term "bonds are off on the continuing realization of stimulus funded by supply" of more debt, said Andrew Brenner, co-head of structured products and emerging markets at MF Global.

Also of concern to bondholders, Timothy Geithner is expected to be confirmed as Treasury Secretary on Monday, opening up the possibility of more details on the Obama Administration's stimulus proposal.

Possibly a threat to bond investors "will be the formal approval of Geithner and his coming forth with more details on the stimulus package, for example homeowners relief, which could add to deficit concerns and, imagine, boost equity market confidence," said David Ader, U.S. government bond strategist at RBS Greenwich Capital.

Also on tap this week is the Federal Reserve's policy meeting. Analysts don't expect any changes to the central banks' target overnight interest rate between banks, already dropped to a range of zero to 0.25% last month.

Policy makers are unlikely to say much different after they meet on Tuesday and Wednesday, having already affirmed they are ready to pull out all the stops to help the economy and stabilize financial markets.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary. You can use this link on the day this article is published and the following day.